OPSEU Local 296 v. Halton Healthcare

Three Halton Healthcare lab employees argued that paid holiday hours should count toward their overtime threshold. The arbitrator disagreed — and the collective agreement’s own language told the whole story.

Background

Three full-time Medical Laboratory employees filed grievances (both group and individual) alleging that Halton Healthcare failed to pay overtime premiums when they accepted additional shifts that were not included on their posted schedule during pay periods which included a paid holiday they did not work. The grievors were:

• Grievor 1 (Medical Laboratory Technologist in Microbiology): Paid for the Civic Holiday on August 5 but worked an additional shift on August 18, 2024. This was his tenth shift actually worked in the two-week period.
• Grievor 2 (Medical Laboratory Assistant): Did not work on the Civic Holiday (August 5) but accepted an additional shift on August 12, 2024. This was the tenth shift in the two-week period she actually worked.
• Grievor 3 (Medical Laboratory Assistant): During the pay period from December 23, 2024 through January 5, 2025, worked 3 shifts on December 30, 31 and January 2, and worked overtime on January 3 (which was the 11th shift actually worked in the 14-day period).

The central issue was whether “hours worked” for overtime calculation purposes includes paid holidays the employee did not actually work.

Collective Agreement Language at Issue

Article 17.01(a) – Hours of Work & Overtime (Full-Time Employees):

“Full-time employees shall be entitled to overtime pay at the rate of one and one half (1 ½) times their regular straight time hourly rate for all hours worked in excess of seven and one half (7 ½) hours per day…and…for all hours worked in excess of…the normal or standard work week [which is] averaged over two (2) pay periods.”

Article 17.04 – Overtime Definition:

“Overtime shall be defined as being all hours worked in excess of the normal or standard workday, or in excess of the normal or standard work week averaged over two (2) pay periods. The overtime rate shall be one and one half (1 ½) times the regular straight time hourly rate. For the purposes of this Article only, Union Business Leave shall be considered as hours worked.”

(Emphasis added)

The Hospital’s Position

The hospital argued that only hours actually performed on the job count toward overtime calculation. Paid holidays are “hours paid,” not “hours worked.” The hospital’s policy explicitly provides that additional tours worked during periods with paid holidays count as overtime, but this policy conflicts with what the collective agreement actually requires. The hospital maintained that the plain and ordinary meaning of “hours worked” excludes paid holidays.

The Union’s Position

The union argued that paid holidays should be counted as “hours worked” for overtime purposes. The union contended that it was unfair to exclude paid holiday hours from overtime calculations, as this creates a situation where employees who happen to have a paid holiday during their pay period are disadvantaged compared to employees who do not.

Arbitrator Abramsky’s Decision

The arbitrator found in favour of the hospital on the interpretation of the collective agreement. The arbitrator’s key findings were:

• “Hours Worked” Has a Specific Meaning: Long and consistent arbitral jurisprudence establishes that “hours worked” means hours spent actually working on the job, not equivalent to “hours paid.” The distinction between “hours worked” and “hours paid” is well settled.
• The Explicit Exception is Significant: The collective agreement explicitly provides that “Union Business Leave shall be considered as hours worked” for purposes of overtime calculation. The parties knew how to create exceptions when they wanted certain non-work hours to count as “hours worked.” The fact that they made this exception for Union Business Leave but not for paid holidays is significant—words that are not there may also be significant.
• The Employer Policy Does Not Override the Collective Agreement: The hospital’s “Overtime/Lieu Time Policy and Procedure” explicitly provides that additional tours worked during periods with paid holidays count as overtime. However, this conflicts with the plain language of the collective agreement. The collective agreement prevails over the employer policy.
• Paid Holidays Do Not Count: Consequently, hours paid for statutory holidays but not actually worked do not count towards the calculation of overtime for purposes of the collective agreement.

The decision underscores that arbitrators will apply precise definitions to collective agreement language and will not rewrite agreements based on perceived fairness when the language is clear. The fact that the collective agreement made one exception (Union Business Leave) but not another (paid holidays) indicates the parties’ intention.

Canadian Union of Public Employees, Local 2628 v. Northumberland Hills Hospital

Read the decision on CanLII — 2026 CanLII 305 (ON LA)

Before: Laura Trachuk (Chair), Robert Jones (Employer Nominee), Joseph Herbert (Union Nominee)

 

Citation: 2026 CanLII 1344